Profit levels in the food manufacturing sector dropped for the third consecutive year and totaled slightly more than $3.5 billion in 2013, down from just over $4 billion in 2010. Food services industry profits fell 33 per cent between 2012 and 2013, to less than $1 billion, due in large measure to high food prices in the early part of last year.

In the food manufacturing industry, consumer demand for healthy choices is driving the development of products such as gluten-free foods. Production is expected to rise by almost 3 per cent in 2014, the strongest increase in several years. Production is being driven by increased export demand. To meet production demand, industry employment is expected to rise by about 16,000 in 2014. Pre-tax profits are come in at almost $3.9 billion, growth of 9.5 per cent.

Food services operators will be benefit from a more moderate increase in food prices. As a result of lower cost growth, profit levels will grow to almost $1.4 billion in 2014, a gain of 46 per cent over 2013. However, the restaurant industry is marked by low profit margins, and that will not change over the next five years.